Purchasing investment property is a powerful way to build wealth, create additional income, and secure your financial future. No matter if you’re a first-time buyer or an existing homeowner looking to purchase a second property, there are several key investment property considerations you should be aware of to help make your investing journey as seamless and financially successful as possible. Whether it is securing a deposit or choosing a quality asset, we’ve listed what you should (and shouldn’t) be doing as a property investor.
If you require the services of an investment buyers agent to help secure your next property, reach out through our online contact form, send an email to hello@setlr.com.au, or call us on 1300 1SETLR to arrange a consultation.
Our Best Advice for Purchasing Investment Property
Understand Your Deposit & Borrowing Power
The first thing you should do when purchasing investment property is to get clear on your borrowing power. Knowing how much deposit you have saved, and if you are going to invest with your own money or use equity in your existing home, allows you to work out how much you can borrow right from the beginning. Your borrowing power is a key consideration that will shape the rest of your investment strategy. Like any major investment, it is vital that you plan ahead to give yourself the best chance to succeed.
Plan Your Investment Strategy
Once you have learned how much you can borrow, it is time to start devising your investment strategy. Whether you are seeking cash flow, capital growth or a balance of both, you should have these investment property considerations in mind when creating your strategy. We recommend seeking professional advice from a buyer’s agent to ensure your strategy is best suited for your goals and situation.
Research the Property Market
Purchasing investment property is a major commitment, so it is important that you research the areas thoroughly before making a move. Consider suburbs that not only fit your budget but also show strong rental demand, low vacancy rates, and that will attract suitable tenants. Properties that are located closer to amenities like schools, stores, and public transport are typically more sought after, meaning you can rent out the property for a higher amount. A buyers agent brings expert knowledge of the property market and can guide you towards areas that offer the best investment fundamentals.
Find a Quality Investment Property
Once you have your budget and investment goals in place, it’s time to choose the type of property you wish to invest in. Whether it’s a house, townhouse, or unit, there are a range of factors you need to consider. These include the level of maintenance required, how close it is to amenities and transport, and if it will appeal to suitable tenants and future buyers. A buyers agent will be able to assess these factors for you while helping you secure a property that aligns perfectly with your investment goals and long-term plans.
Choose the Right Loan
The investment loan you choose can significantly impact your cash flow and long-term flexibility. Investment property considerations regarding your choice of loan include whether you desire fixed or variable interest rates, access to offset accounts, and interest-only payment periods. Tailoring your loan around your investment goals helps maximise the impact of your strategy.
Factor in Ongoing Costs
There are more investment property considerations than just purchasing the property, as property ownership brings with it an assortment of ongoing costs that you must plan for. These include council rates, property management fees, insurance, utility fees, maintenance, and body corporate and strata fees. All these potential fees and costs should be factored into your strategy so you don’t find yourself suddenly bombarded by ongoing costs you can’t afford.
Seeking Advice with Purchasing Investment Property?
At Setlr, we are the Brisbane buyer’s agent you can rely on for all your property buying needs. Whether you are interested in purchasing an investment property or a new home for your family, we’ll help you find the best property for the best price. Give us a call on 1300 1SETLR, send an email to hello@setlr.com.au, or access our online contact form to get started today.